Price of Ethereum – Dive into Ethereum – Part 3
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
We here at Metaverse news We know you know the crypto world well, but we can see that we have a lot of new readers every day. That’s why respect and cover the approaching one Merging Ethereum, we will publish a series of articles that discuss the topic in a little more depth. What is ETH and what does future merging mean?
It is very important to make it clear that I, Annika, am not a financial advisor, that I have no academic background in finance, and that the above are only my own personal concerns and are not related to Metaverse news or opinions about it Metaverse news shares.
Let’s take a look at some of the factors that can affect Ethereum’s price
In mid-July 2022, one coin of ETH, the native cryptocurrency of Ethereum, was worth about $1,500. This was almost the same value as now.
There are a few things that can make it higher or lower, including the following:
Expanding market downturn
The decline in the value of the cryptocurrency market during the first half of 2022 was quite ordinary compared to the development of other asset classes. Concerns and fears have been fueled by a number of geopolitical and socio-economic crises, including the ongoing Covid-19 epidemic, skyrocketing inflation and the conflict between Russia and Ukraine. Markets suffer when there is uncertainty, and this has also been the case in the cryptocurrency space.
Testing of the new proof-of-stake system on the Ethereum blockchain has begun, and excitement is building for the so-called Merge event, which will occur when the Ethereum mainnet (the original blockchain) changes sometime in 2022. This event is called a merge. However, Ethereum’s performance in 2022 has not yet lived up to expectations. This is only halfway through the year. Potential investors are waiting to see how consumers and businesses react to the long-awaited changes, and how well individuals adapt to them, before deciding whether or not to invest.
There are actually dozens of alternative cryptocurrencies, despite the fact that the media usually focuses on Bitcoin and Ethereum. The database known as CoinMarketCap tracks the prices of around 10,000 separate digital currencies at a time. Others have created tokens for more specific uses, while many cryptocurrency creators want to supplant Bitcoin as the dominant cryptocurrency. Despite the fact that the market is in a constant state of change, any currency, new or old, can develop into a significant participant in tomorrow’s markets. Consider the fact that a few years ago, no one would have bet that the once ubiquitous BlackBerry would become less popular. This is just one example that shows how quickly the technology landscape can change.
Greater concentration of the regulatory apparatus
It is reasonable to assume that by 2022, the cryptocurrency industry will have evolved from a fleeting fad to a $3 trillion asset class. It’s possible that the early stages of a new investment product will feel more like the Wild West than anything else, but if it succeeds, regulators will almost certainly start looking into it.
Some of the most senior government officials in the United States, including Federal Reserve Chairman Jerome Powell and Securities and Exchange Commission Chairman Gary Gensler, have expressed public concern about the lack of regulation of cryptocurrencies. Meanwhile, President Joe Biden signed an executive order in March 2022 asking the Treasury Department to draft new rules. Therefore, it is possible that laws and regulations governing cryptocurrencies may evolve over time, which may or may not prevent the growth of Ethereum and its competitors. However, it is likely that this could happen.
When all is said and done, the price of Ethereum (ETH), like the prices of most cryptocurrencies, has seen huge swings from a record high in 2021 to losing two-thirds by the midpoint. from 2022. There are several factors that can affect the price of a cryptocurrency, and one of them is Ethereum 2.0. This software update makes the Ethereum network more scalable and efficient, but that’s only one of those factors. As a result of this fact, several industry experts predict that the second most valuable cryptocurrency, Ethereum, may soon overtake Bitcoin in terms of market capitalization. The price of Ethereum, along with the prices of other cryptocurrencies in the market, may be dragged down by a bear market, as well as increased competition in the cryptocurrency industry and increased regulation.
Get a competitive edge with insights from industry leaders and influencers by clicking here
Follow Metaverse News wherever we publish, Twitter & Instagram